Showing posts from September, 2014


This short trade was done as the pair continued to break above the Range setup on its Daily Chart. It was already close to the target of this Consolidation breakout and was always expected to provide a small number of Pips. If the exit point was correctly chosen here, we will see a pullback in the pair by the end of the week to confirm the decision. DAILY CHART - RANGE BREAKOUT The Breakout Equivalent is the price target to which all Consolidations head towards before pulling back. It is an ideal place to exit trades since this pullback often leads to a reversal or a long period of sideways movement before the trade continues.  The breakout was part of the resumption of the overall uptrend above the Outer Uptrend Line following the break above a Downtrend Line. DAILY CHART- STRONG UPTREND Trades such as these are ideal for those who focus exclusively on the smaller movements on the Currency Market. They can, however, be very risky given the tighter


As the Euro continues its slow but steady decline against the US Dollar, the current value of the short trade open on this pair is now 105 Pips out of the 277 Pips targeted.  This was done within the context of the strong downtrend that began in May this year after the turn at Resistance of the large Pennant on the Daily Chart.  DAILY CHART - PENNANT SETUP DAILY CHART - OPEN TRADE The nearly 1400-Pip decline has provided Day and Swing Traders with many shorting opportunities along the way. This current trade, which could reach its target in a few days/weeks, was opened following the break of a Pennant on the 4 Hour Chart. 4 HOUR CHART- ENTRY SETUP As with all breakouts short from Consolidation, the Stop Loss was placed above the Resistance. Following this entry, additional or new short positions could also have been placed at subsequent bearish signals. The Limit Order has been set to just above the Support of the larger Pennant. 4 HOUR CHART- TRADE TARGET The t


After pulling back from a short-lived breakout above its large Pennant setup recently, this pair now seems to be forming a small Range at the Resistance of that Consolidation. This created an opportunity to go long as it began to form the 1st Support point of this new setup. Entry took place using the signals on the Daily and 4 Hour Charts to provide a quick 100-Pip trade between Friday and Monday morning. From the Daily Chart below, we can see the Pennant setup that was initially broken to start a rally in favour of the Aussie dollar. However, this would last for only a few days before the pair returned to the Resistance. DAILY CHART- BREAKOUT & PULLBACK The nature of the candles that had pulled back to this Resistance suggested that a small Range was going to be formed. These bearish candles were small and slow and are the type normally associated with the start of a Consolidation setup. These candles were then followed by a Bull Candle that point


The EURO USD has been  steadily  declining over the last several weeks  following the turn at the Resistance of its large Pennant Consolidation. There have been very few pauses or pullbacks in this strong downtrend that now has its sights set on the Support boundary of this Pennant, 350 Pips away. Trading these slow trends can be very profitable and with a short time remaining before that boundary is hit, the current trade opened on this pair could provide a very large return in October. The recent pullback at the Resistance of this Pennant setup can be seen in the Daily Chart below.  This large Consolidation was actually formed following the sharp gains for the USD during the period of risk-aversion related to the Financial Crisis. DAILY CHART - PENNANT CONSOLIDATION DAILY CHART- OPEN TRADE To take advantage of this strong trend, entry took place shortly after the currency pair broke a Counter Trend Line (CTL) to resume the trend. The


Between January and September of this year, several trades were made using my Price Action Methodology to generate gains of 150 Pips on average per trade. The most recent of these came from the AUD NZD and the AUD USD at the start of September which together provided a total of 218 Pips. If an investor or trader with an initial capital of US$100,000 were to use this Methodology as a means of accumulating large rates of return within a few months, he is likely to be able double his capital within 6 months with only a handful of High Probability Trades. The table below shows some of the trades made earlier this year which represented a sample of those made over the last 6 years (see Past Trades ). On average, they required a risk of 105 Pips and provided an average gain of 150 Pips. TABLE 1 - JANUARY 10 TO SEPTEMBER 17, 2014 The Methodology is such that these trades arise an average of 2 times per month. They rely on the Daily and 4 Hour Charts for entry and exit signal


The major crosses for the Japanese Yen have rallied sharply in the last few days, with gains of between 500 and 1000 Pips seen for the USD, EURO, GBP and the CHF. Although some of these have started to pullback, the setups on their respective Daily Charts suggest that this could be temporary ahead of further losses for the Japanese Yen. The USD JPY led the way with a strong breakout from a Range setup on August 20. DAILY CHART- RANGE SETUP DAILY CHART- BREAKOUT The GBP JPY followed with a breakout of its own of over 1000 Pips from a Pennant setup. DAILY CHART- PENNANT SETUP   DAILY CHART- BREAKOUT   In breaking the Resistance of this Pennant, however, the pair exceeded its Monthly Range (see Trading Manual ). This means that it is expected to pullback or move sideways for awhile before resuming the uptrend. As long as the bullish signal given after this pause is strong and clear, traders will b